1. Should I Buy It, Lease It, Rent It, or Just Do Without It?
Owning an Automobile
Should I Buy It, Lease It, Rent It, or Just Do Without It?

2. Determine Needs vs Wants
Essential Questions
How old do you have to be to purchase an automobile?
Are you required to purchase insurance in order to drive an automobile?
Will you need another responsible adult to sign the loan or lease documents?

3. Terms to Know
Lease – A method of obtaining a new or used car that involves only paying for a portion of the car’s actual cost. In a lease, you pay for the portion of car used over the number of years in your lease agreement.
Rent – When you rent an automobile for periods of time, generally ranging from a few hours to a few weeks
Purchase – To acquire something by paying for it; to buy
Amortization – An accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.
Interest Rate – the portion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

4. Things to Know When Purchasing an Automobile
Most states require the purchase of insurance in order to drive
It is important to determine operating costs of the vehicle and mileage rates.
Down payments or trade in may be required and must be considered in calculating the cost of owning an automobile.

5. Research the Purchase of An Automobile
Utilize various Internet resources in making the purchase of an automobile.
Determine what documents will be necessary to prove credit worthiness
Compare renting, leasing a vehicle versus buying one.

6. Purchase or Lease Choose an automobile that is suitable for your needs
Check Kelly’s Blue Book or Edmunds Car Buying Guide
What are the ways to finance the cost of the purchase of an automobile?
Down Payment
Trade In

7. Required for Automobile Purchase Project
Print Evaluation Sheet
Find your Vehicle: Use an ad from a newspaper or an online source to find your vehicle
Loan Application: Complete a loan application (access from website)
Print Amortization Schedule: Enter your principal, select desired payments per yr., Interest Rate, # of Reg pymts (leave ballon pymt and pym amt empty, click calculate).
Complete Monthly payments for each option calculated by using the monthly payment formula found on the website.
Compute the Total cost of a loan for each option (monthly payment multiplied by number of payment – Use an excel spreadsheet)
Summary: Complete a word processed summary of the best choice of loan option with justification of why they chose that option. Include in the summary of what was learned from this experience.

8. Project Specifics
Instructions for the project can be found from the following link: